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NEWSLETTER – SEPTEMBER 2014
INDEX
• Direct Taxation
• Indirect Taxation
• Corporate and Other Laws
• Audit & Accounts
• Statutory Due Dates for September 2014
Newsletter – September 2014
DIRECT TAXATION
Index
• Due date for filing Tax Audit Report Extended
CBDT, vide notification F. No. 133/24/2014 dated 20 th August 2014, extended due date for furnishing Tax Audit
report u/s 44AB of the Income Tax Act, 1961 for AY 2014-15 from 30.09.2014 to 30.11.2014 in case of assessees
who are not required to furnish report under section 92E of the Act. The order is silent about the extension of due
date for filing returns. Audit report needs to be furnished first before filing income tax returns for audit assesses.
However the CBDT order remains unclear on this subject.
Newsletter – September 2014
INDIRECT TAXATION
Index
•Important Service Tax Amendments applicable from 1st October 2014
The CBEC vide its Notification No. 18/2014-ST dated August 25, 2014 (“the Notification”) has fixed the date of
applicability of provisions of Section 114(A),(B),(C) of the Finance (No.2) Act, 2014 as October 1, 2014
(“Effective Date”). The changes include, changes made in Interpretation of various terms -, Changes made in the
Negative List of Services, Changes made in Rate of Exchange for valuation of Export or Import of Services,
Variable Rates of Interest for Delayed Payment of Service Tax, Changes in Partial Reverse Charge
Mechanism etc.
E-payment of Service tax has been made mandatory with effect from October 1, 2014. Relaxation from epayment may be allowed by the Deputy Commissioner/ Asst. Commissioner on case to case basis.
Newsletter – September 2014
CORPORATE AND OTHER LAWS
Index
•EPF Limit increased to Rs. 15,000/Vide notification dated 22nd August 2014, Ministry of Labour and Employment has increased Employee
Provident Fund (EPF) Limit to Rs. 15000 from existing Rs. 6500 wef 01.09.2014. This Scheme may be called
the Employees’ Provident Funds (Amendment) Scheme, 2014. It shall come into force on and from the 1st day
of September, 2014.
•Company Law Settlement Scheme
The Ministry of Corporate Affairs, in order to give an opportunity to companies who have failed to file annual
statutory documents (Annual Return and Financial Statements), has launched Company Law Settlement
Scheme, 2014 (CLSS-2014), vide General Circular no. 24/2014 dated 12 th August 2014. The scheme gives an
opportunity to the defaulting companies to enable them to make their default good by filing belated documents.
Under this scheme corporates can avail immunity from prosecution from delayed filing and reduced additional
fee of 25% of actual fee payable. The scheme shall remain in force for a period of 2 months from 15 th August
2014 to 15th October 2014.
Newsletter – September 2014
Audit & Accounts
Index
•MNC audit exemption for past transactions only with inflation adjustment
Audit exemption allowed by the taxman for MNCs subject to their declaring transaction prices above specified
thresholds would be available for past transactions only with inflation adjustments.
Under the advance pricing agreement (APA), a facility built into the income tax law to avoid litigation to the
extent possible, an MNC can get audit exemption either by a mutual agreement with the taxman on the arm's
length price of cross-border transactions or the profit margins they need to declare in India regarding such
transactions.
The government has now decided that in case an MNC opts for agreement on arm's length price, then, as regards
past transactions, the said price has to be adjusted for inflation. This means, for instance, if an Indian entity is
exporting a service to an associate in another country at an arm's length price agreed under an APA, it will have to
show a lower price for the previous years for audit waiver. Similarly, an Indian entity importing a product or
service from a foreign associate will have to consider inflation in that country while arriving at the value of past
year transactions to get APA benefit for those years. Inflation in India has been high in recent years compared to
most of India's leading trade partners, including western countries.
Finance minister Arun Jaitley, in his Budget, conceded to the industry's demand for a 'roll back' (retrospective
application) of the APA — deals signed between companies and the tax department to avoid tax audits in future
years if certain minimum profits are declared by the firms.
Newsletter – September 2014
STATUTORY DUE DATES FOR SEPTEMBER 2014
•Statutory Due Dates Calendar for September 2014
Due Date
Statutory Compliance
5th September 2014
Payment of Service Tax/ Excise duty
7th September 2014
Payment of TDS
10th September 2014
Excise Return (if monthly)
15th September 2014
Payment of Advance Tax
15th September 2014
Payment of Provident Fund contribution/
Profession Tax
21st September 2014
Payment of ESIC/ MVAT
30th September 2014
Due date for holding AGM for companies
whose financial year ends on 31st March
Newsletter – September 2014
Index
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Newsletter –September 2014